Connect with us

Buzz

3 reasons why more American Millennial homebuyers are flocking to the suburbs

Editor

Published

on

[ad_1]







Photo: Robert Clark

Whether they’re buying or renting, more American Millennials are ditching the big city and moving to the suburbs, according to the results of the recent Ernst and Young Millennial Economy 2018 survey.

Since 2016, more Millennials have been moving out of their parents’ house and taking the plunge into home ownership. In fact, the rate of homeownership among younger Millennials (aged 28 to 31) rose 20 percentage points between 2016 and 2018, and 11 percentage points among older Millennials (aged 32 to 36).

Some 38 percent of Millennials are living in the suburbs, either renting or as homeowners, compared to the 37 percent reportedly living in the city. However, among Millennial homeowners, 41 percent are choosing to buy in the suburbs, compared to just 31 percent in urban areas.

The suburbs have a lot to offer first-time buyers, including similar amenities to their larger urban counterparts, but usually at a lower cost to the consumer.

1. More bang for the buck

The national median home price is currently in the vicinity of $275,000, but can be substantially higher in some large urban markets.

Median home values broke $600,000 in California for the first time in 2018 and are over $800,000 in the New York City area. And in Atherton, located in San Mateo County in California — the most expensive zip code in the country — the median home price is $6.7 million.

“Suburban homes tend to have higher prices, but lower prices per square foot. So while suburban homes offer a great deal for buyers who need lots of room, buyers who do not need a lot of space can be pressed to justify the extra costs associated with the additional space,” Aaron Terrazas, a senior economist with Zillow, recently told Livabl.

2. More deals to be had

Lack of inventory has been a constant concern for homebuyers in recent years, as competition grows and prices rise. But inventory is starting to expand.

Compared to last year, there were 3 percent more homes for sale in October nationwide, according to Zillow. Inventory had fallen annually for 44 straight months before posting positive growth.

And, many sellers were cutting prices to make a sale. According to data from the listing site Redfin, a third of homes for sale in October had at least one price drop of more than 1 percent — the highest share of price drops on record since Redfin began tracking this metric in 2010.

3. Greater affordability

At the national level, the typical urban homeowner spends 26.5 percent of their gross income on housing costs, just below the industry accepted 30 percent standard (most financial experts recommend spending no more than 30 percent of income on all housing costs per month).

Meanwhile, the average suburban homeowner spends about 20 percent of their income on housing.

But in some pricier metros, the gap between urban and suburban can be even greater. For example, the typical New Yorker spends 40 percent of their income on housing to live in the Big Apple, compared to nearly 27 percent to live in the suburbs.

Since 2007, urban housing costs have increased by roughly 30 percent, while incomes have only grown 17 percent. Housing costs in more rural areas have risen 16 percent, a figure more closely aligned with Millennials’ median wage growth.

Still, the grass isn’t always greener in the suburbs.

Bucking the trend, life in the ‘burbs turns out to be a bigger financial burden for buyers in about half of the country’s largest markets (17 of the top 35 metros), compared with the costs of urban living. For example, the median home value in Short Hills, NJ is over $1.4 million — well above the $825,000 median value found in nearby New York City.

[ad_2]

Source link

قالب وردپرس

Buzz

New home? Prepare for the unexpected

Editor

Published

on

By

(NC) Buying a house, getting married or having your first baby are all major life events that are likely to affect your finances. But whether you’re in the midst of a major life event or not, it’s important to check in on your finances regularly to maintain good financial health.

Your financial health encompasses things like your spending, savings, borrowing and future financial plans. It also means dedicating a set amount of savings for unexpected future events. It can even include optional credit protection insurance, such as TD protection plans, to help cover your debt balances in case of death, a covered critical illness or total disability.

Even though it can be tough to think about the unexpected, life is unpredictable and it’s important to plan for the unexpected. Find more information at td.com.

Continue Reading

Buzz

Mortgage pitfalls to avoid

Editor

Published

on

By

(NC) Throughout life, you may have moments where you’ll make a large purchase or invest in a costly item, like your family home. But whether you’re in the market for your first new property or already have a mortgage, leaving this asset unprotected can be costly.   

Insuring your housing financial debt, as well as debt for other big-ticket items like a new boat for your lakefront cottage or keepsake jewelry like an engagement ring, is a smart investment in your well-being.

To help protect your debt balances like a mortgage, your bank may have optional credit protection insurance products.

“Your home is one of your biggest assets, yet illness can happen at any stage of life. Worrying about your mortgage when the focus should be on health isn’t a situation anyone would wish for,” explains Shirley Malloy, vice president at TD. “Fortunately, we offer mortgage protection to provide coverage for your outstanding balance should you face a covered critical health event.”

Mortgage protection can be purchased whether you’re in the process of applying for a mortgage or already have a home financing solution. But what about protection options for credit card debt?

“Given the unprecedented circumstances of this year, many Canadians are trying to plan for the unexpected to protect themselves and their finances,” says Malloy. “TD balance protection plus is an optional product designed to help you deal with your credit card payment obligations in the event of a covered event, such as loss of employment.”

Continue Reading

Buzz

Is your internet too slow? It’s probably not you

Editor

Published

on

By

(NC) We all know the aggravation of a school lesson that just won’t stop freezing or the family video call that looks more like a photo montage. And, as we adjust to the impact of COVID-19 on our day-to-day, that slow connection can have frustrating consequences.

Working from home and learning remotely, both need fast, stable internet, something not enough Canadians have yet. Even if you have fast devices in your home, if the infrastructure in your area is not optimal, your connection won’t be either.

Right now, cities have the infrastructure needed to ensure access. But rural and remote communities are hugely underserved, with fewer than half having high-speed internet, and fewer than a third of households on reservations have high-speed connections.

Fortunately, change is coming. The Universal Broadband Fund is backing projects across Canada right now to ensure the reliable, high-speed internet connections families need to work, study, access services online, and safely stay in touch with each other.

The fund existed before COVID, but as a response to the pandemic, its timetable has been moved up by four years to a target of 98 per cent of Canadians with high-speed internet access by 2026. With the faster pace, at least 90 per cent of us should be connected by the end of 2021.

The fund is focused on improvements in rural and remote communities across Canada to fix the disconnect between internet access for urban and rural households.  This means more remote work opportunities, better access to remote learning and safer access to healthcare, no matter where you live.

It’s not just for good connections at home, either. The improvements mean much better access to mobile networks on highways between remote communities. The result is better, safer navigation and access to emergency services for your family, even on the road in the middle of nowhere. Mobile projects will be focused on serving Indigenous communities and the roads leading to them.

The shape these improvements will take in your area will depend on where you live. Canada is huge, and its communities are hugely diverse, with diverse needs. Keep an eye out for local projects — they’re a small part of something much bigger.

Continue Reading

Chat

Trending